5 items to watch for in the federal budget
Finance Minister Jim Flaherty bringing down his 8th federal budget today
By Laura Payton, CBC News
Posted: Mar 21, 2013 5:15 AM ET
Last Updated: Mar 21, 2013 7:39 PM ET
Federal Finance Minister Jim Flaherty has hinted at some of what will be in Thursday's budget.
(Adrian Wyld/Canadian Press)
Related
Related Stories
- A snapshot of Canada's federal and provincial fiscal health
- PQ accused of sabotaging transfer payment talks
- Budget watchdog's swansong is a day in court
- Peeved Harper aims at 'remaking Canadian labour force'
- Chief of defence staff prepared for deeper military cuts
- Offshore tax dodgers coming under greater pressure
Last year's budget brought $5.2 billion in cuts to federal government spending, trimming the civil service and projecting future cuts to Old Age Security. With the 2012 budget outlining cuts for the following three years, the 2013 budget isn't expected to hold many additional trims.
But most budgets do feature something that grabs headlines, even in advance. This morning, CBC News has confirmed tariffs on imported hockey equipment will be dropped. It's one of few expected goodies in an otherwise austere budget.
Here are some other things to expect from Finance Minister Jim Flaherty:1. Skills development and retraining money
Last year's budget announced changes to Employment Insurance that came into effect in January, making it harder to turn down work and still receive EI. This year's budget may have more measures to push workers to fill open jobs, particularly those in the skilled trades. As CBC News reported earlier this week, Prime Minister Stephen Harper is worried about those open jobs. Flaherty echoed that sentiment in a letter to caucus.
"There are too many jobs that go unfilled in Canada because employers can't find workers with the right skills," he said in a letter to the Conservative caucus.
"Training in Canada is not sufficiently aligned to the skills employers need."
Expect to see measures in the budget to promote apprenticeships, break down provincial licensing barriers that prevent skilled workers from moving across the country and train or retrain aboriginal workers, older workers, recent immigrants and people with disabilities. This measure may also include taking back some of the $2 billion a year transferred to the provinces now under labour market development agreements, or the federal government could renegotiate those agreements to direct more of the money to include private sector training partners.
There's also a separate category of labour market agreements with the provinces, worth about $500 million a year, that are designed to retrain people who aren't eligible for EI. The government could use this program to turn people toward skilled trades work by using incentives like retraining and personal tax breaks. It could also be a way to target young Canadians with no labour market experience. The national unemployment rate was 7.0 per cent last month, but unemployment for Canadians aged 15 to 24 was nearly twice that, at 13.6 per cent.
Flaherty also noted that, in terms of manufacturing, "There is more we can and will do to support this important sector of the Canadian economy."
2. Money for cities
Last November, Canada's big city mayors hit Ottawa and called for billions of dollars and a 20-year plan to fix the country's crumbling roads and sewer systems. The current Building Canada infrastructure program set up by the Conservatives in 2007 is set to end in spring 2014, leaving room for the federal government to offer a new deal to the cities, which say that for every dollar of taxes Canadians pay, municipalities get only eight cents.
The mayors called for $5.75 billion a year, a $2.5 billion increase over the current funding. They pledged to match that amount, along with the provinces, and said $1 billion of that should be dedicated to fighting gridlock. The Federation of Canadian Municipalities says gridlock costs the economy $10 billion a year in lost productivity.
In the letter to caucus, Flaherty said the government "will do more" to build on investments it's already made in infrastructure.
3. First Nations education cash
Funding for on-reserve education is one of the key issues for Assembly of First Nations National Chief Shawn Atleo, who has repeatedly called for increases. Money for First Nations education has been capped at two per cent per year since 1996, an amount Atleo says hasn't kept pace with population growth and is nowhere near the provincial funding provided for off-reserve schools.
The government promised $275 million for early literacy programs and on-reserve school renovations in the last budget. Some of that money has already been delivered. The Conservatives have also started consultations on a First Nation Education Act, aiming to have a bill ready to go in 2014, although Atleo said in October that he was instructed by the chiefs to reject it. It's possible after a difficult year for the government's relations with First Nations people there could be something in the budget to ease that relationship.
4. Small cuts
Since last year's budget announced cuts over three years, it's not likely Canadians will see large cuts included in this year's budget. But with the government trying to eliminate the deficit by 2015, it's possible Flaherty will find new places to scale back federal programs.
5. Closing tax loopholes
The government has been looking at closing tax loopholes as one method to to address falling revenues and dealt with a handful of obscure loopholes in previous budgets. It may also look at measures to deal with offshore tax dodgers, something Liberal Senator Percy Downe says the Canada Revenue Agency is doing little to address.
With files from Greg Weston and James Fitz-MorrisShare Tools
Wright out over Duffy payback: Reaction from the Hill and beyond by Kady O'Malley May. 19, 2013 10:39 AM New chief of staff expected to be longtime Harper aide and current principal secretary Ray Novak
Top News Headlines
- Will alleged Rob Ford video overshadow Toronto casino debate?
- A debate about a proposed downtown casino is supposed to take centre stage at Toronto City Hall on Tuesday, but it seems a safe bet that a still-unseen video of Mayor Rob Ford will continue to be a topic of conversation. more »
- Harper to address Tory caucus amid Senate scandal
- Conservatives gathered Monday night to mourn the passing of a key architect in their rise to power — and to brace for the toughest test Prime Minister Stephen Harper's government has faced since taking office on a promise to clean up politics in the national capital. more »
- Keith Boag: Have you heard about the murderous abortion doctor?
- The gruesome trial and murder conviction of Philadelphia abortion provider Dr. Kermit Gosnell is unlikely to change American abortion law, Keith Boag writes. But it has U.S. journalists questioning their priorities and how they cover such a sensitive issue. more »
- Fearful Oklahoma families search for children
- The parents and guardians stood in the muddy grass outside a suburban Oklahoma City church, listening intently as someone with a bullhorn called out the names of children who were being dropped off — survivors of Monday's deadly tornado. more »
Must Watch
Latest Politics News Headlines
- Harper to address Tory caucus amid Senate scandal
- Conservatives gathered Monday night to mourn the passing of a key architect in their rise to power — and to brace for the toughest test Prime Minister Stephen Harper's government has faced since taking office on a promise to clean up politics in the national capital. more »
- PM's South America trip turns focus from turmoil to trade
- Prime Minister Stephen Harper will briefly address the Senate expense controversy Tuesday before heading to South America for four days of bilateral talks and trade meetings. more »
- NDP wants RCMP inquiry into $90K payment to Duffy
- The NDP has asked the RCMP to launch an investigation into the $90,000 payment from the prime minister's former top aide, Nigel Wright, to Senator Mike Duffy in relation to the Senate expense scandal. more »
- Can the Senate fire a senator?
- An expert on parliamentary rules says the Senate has the power to turf a senator from the chamber, as long as a majority approves the expulsion, and as long as there is cause. more »
- Canadian on EI shut out amid foreign worker influx
- A jobless Canadian IT professional who is collecting employment insurance is upset because he now suspects several recent jobs he applied for went to temporary foreign workers. more »
The National
The House
- Questions mount for Harper and chief of staff Nigel Wright in Senate scandal May. 18, 2013 1:15 PM This week on The House, with Senators Wallin and Duffy now out of the Conservative caucus, we get reaction from NDP Ethics critic Charlie Angus. We also hear directly from Senator Patrick Brazeau who says the Conservatives have thrown him under the bus. Plus we speak with B.C. Premier Christy Clark after her stunning victory.
- 51 dead after tornado levels Oklahoma suburbs
- Oklahoma tornado rescue crews work through night
- Edmonton driver, 62, charged in boy's patio death
- Unknown remains found on Dellen Millard's farm
- Will alleged Rob Ford video overshadow Toronto casino debate?
- Netflix and the rise of binge TV watching
- Ray Manzarek of The Doors dies at 74
- B.C. man feared kidnapped in Mexico
- Canadian on EI shut out amid foreign worker influx


